The sustenance of modern economy and the economic growth of any country depend on the long term availability of energy resource.There is a deliberate search to find an alternative source of energy which is affordable, easily accessible and environmentally friendly as well.In this front Bio-fuels derived from natural biomass have huge potential and could be panacea for the current energy crisis.The processed B20 AOME and B20 FOME is used to run a variable speed CI Engine.The results obtained from the experimentation proves that the bio diesel to be efficient and eco-friendly than Diesel.